§203. Measure to forestall insolvency of multiemployer plans

Pension Protection Act of 2006

Title II Funding rules for Multiemployer Defined Benefit Plans and Related Provisions

Subtitle A Amendments to Employee Retirement Income Security Act of 1974

§201. Funding rules for multiemployer defined benefit plans

§202. Additional funding rules for multiemployer plans in endangered or critical status

(a) ADVANCE DETERMINATION OF IMPENDING INSOLVENCY OVER 5 YEARS.-Section 4245(d )(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1426(d)(1)) is amended-

(a)(1) by striking "3 plan years" the second place it appears and inserting "5 plan years"; and

(a)(2) by adding at the end the following new sentence: "If the plan sponsor makes such a determination that the plan will be insolvent in any of the next 5 plan years, the plan sponsor shall make the comparison under this paragraph at least annually until the plan sponsor makes a determination that the plan will not be insolvent in any of the next 5 plan years.".

(b) EFFECTIVE DATE.- The amendments made by this section shall apply with respect to determinations made in plan years beginning after 2007.

§204. Withdrawal liability reforms